The impact of DM reaches far beyond the physical symptoms of the disease, often the emotional distress (“psychological insulin resistance“), pathophysiological, and psychosocial wellbeing on the quality of life (QoL) of these patients complicates the effective management of their disease. However, patients are mislabeled as “diffcult patients” and considered to have unnecessarily treated for psychiatric illness which they may not need. This study aimed to assess the evidence linking type 2 diabetes mellitus (T2DM) and psychosocial aspects and to obtain an estimate of the risk. Using electronic data base from reputable published journal (PubMed/Medline, scopus) during 2010 to 2019. Of several journals collected, eleven articles were selected to see the psychosocial factors that significantly influence the quality of life of patients T2DM.   The results showed that T2DM is clearly at high risk of decreased psychological wellbeing associated with impaired health-related QoL while the prevalence has reach 20% of lifetime diagnosis of anxiety than those without it. Since insulin treatment has a significant association with depression, hypoglycemia, and various other psychiatric disorders: adjustment disorder, substance and/or alcohol use disorder, bipolar disorder and schizophrenia. In addition, lower educational level, lower quality of life, internal control and socioeconomic status are more likely to develop depression. Whereas, women are at increased risk of diabetes-related cardiovascular complications which were primarily related to having diabetes as well as managing the multiple responsibilities of being a caregiver. A large number of these hidden factors that interplay with each other and impact on the physical outcomes of DM goes unnoticed by health care providers it is necessary need psychological support throughout patient life span from the time of diagnosis since provision of psychosocial support is generally inadequate due to its challenging nature of needs and demands on the healthcare systems.